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Summary and Policy Implications
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adjustment costs assumption benefit-cost ratio capital services chemical and petroleum chemical and pharmaceutical CIT forward complete short-run forward depreciation dominant firm endogenous variables equal to zero expected values full shifting full short-run forward full tax shifting Hq not rej hypotheses market power Increase in Investment investment allowance investment in knowledge investment in physical investment tax credit knowledge capital labour and materials Lagrangean limit pricing non-nested hypothesis tests optimal output pair of joint Pakistani chemical Pakistani textile industry perfect competition period petroleum derivatives industries pharmaceutical industries physical and knowledge physical capital physical investment prices of capital R&D expenditures rational expectations rental prices rpkt(tax rppt(fs sample services from knowledge services from physical shift the CIT short-run forward shifting stock of physical Table tax allowance tax incentives tax parameters Turkey Turkish chemical Turkish Lira unexerted market power variable cost function variable inputs labour